How the USPS Rate Increases Will Affect Publishers
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On September 25th the United States Postal Service announced proposed price changes that will go into effect in January 2014. Mail owners, who cannot participate by late January 2014, could lose their automation discounts and experience additional postage costs as high as 10% of their 2013 postage bill. This presentation breaks down the rate increases and what this means for publishers.
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How the USPS Rate Increases Will Affect Publishers
- 1. How the 2014 USPS Rate Increases Will Affect Publishers WELCOME Wednesday Webinar Series | November 2013 Innovate. Automate. Collaborate. Contact Marianne Calilhanna P. +1. 267.640.9158/ Marianne.Calilhanna@Cenveo.com
- 2. AGENDA • Introductions • Background on USPS rate increases • Impact for publishers • Questions from you Innovate. Automate. Collaborate.
- 3. ABOUT US We are a leading print and content solutions provider for the publishing industry CONTENT DELIVERY TECHNOLOGY Print XML transformations Production management USPS distribution XML to InDesign Copyediting Online XML editors Composition PDF QA scripting Expedited production models eBook Mobile and eContent Publish ahead of print Metadata Quality control checks Innovate. Automate. Collaborate.
- 4. OUR SPEAKERS Frank Lynn Kristina Freeman Vice President of Postal Affairs and Distribution Director of Business Development Innovate. Automate. Collaborate. Marianne Calilhanna Director of Marketing
- 5. PRICE INCREASE OVERVIEW Postage prices will be above the inflation-based price cap to generate $2 billion in revenue in 2014 Total average increase of 6% on market dominant products • CPI (1.6%) + Exigent (4.3%) Lower price for metered postage • First-class mail single piece stamp $0.49 • First-class mail single piece meter $0.48 Introduction of FSS pricing • FSS bundle and container preparation required in FSS zones • Prices encourage entry at FSS facility Continues full-service IMB incentives • First-class mail: $ 0.003 each or $ 3.00 per m • Standard mail and periodicals: $ 0.001 or $ 1.00 per m Innovate. Automate. Collaborate.
- 6. PROPOSED PERIODICAL PRICING Current Price CPI Price CPI + Exigent Price Percent Change Barcoded machinable flats Carrier route basic (piece rates) 0.193 0.197 0.205 6.2% Barcoded machinable flats 5-digit (piece rates) 0.291 0.295 0.308 5.8% CPI Price Exigent Price Total Percent Change Outside county 1.5% 4.3% 5.9% Inside county 1.6% 4.3% 6.0% Innovate. Automate. Collaborate.
- 7. VALUE OF IMB PROGRAM Intelligent mail barcodes offer opportunities to improve the value of your mail channel • Maintain automation discounts – represents as much as 8% to 10% of postage costs • Qualify for participation in future mail programs • Ensure deliveries are made in a timely manner • Synchronize multi-channel marketing • No charge for address change notices Innovate. Automate. Collaborate.
- 8. WHAT DOES THIS MEAN FOR YOU This impacts all of us: magazines, journals, catalogs, and printers Printers: So,ware updates & procedural changes Publishers: Educa9on, postal registra9on (IMB benefits) USPS: Cash-‐flow/revenue; beHer visibility into mail flows Innovate. Automate. Collaborate.
- 9. STRATEGIES YOU CAN USE 1. Evaluate co-mailing or drop shipping opportunities 2. Explore additional options to generate more revenue using enclosures 3. Address mail hygiene 4. Offset increases with additional revenue Innovate. Automate. Collaborate.
- 10. EXAMPLES 2014 Postage Co-mailed With Full Serivice IMB (fees vary) Advertising Content Single Copy Weight 2013 Origin Postage Proposed 2014 Origin Postage 2014 Postage Without FullService IMB Disc Journal A 12,079 copies 22% 0.945 $6560.73 $6953.06 $7157.07 $4519.49 NP Journal 28,619 copies 0% 0.4085 $8494.83 $9002.82 $9380.04 $5851.83 Magazine 11,504 copies 28% 0.614 $4900.89 $5193.96 $5571.18 $3376.08 Magazine 39,440 copies 10% 0.5035 $13,116.94 $13,901.33 $14,278.55 $9035.87 Innovate. Automate. Collaborate.
- 11. CENVEO VALUE CHAIN Giving you the best ROI for every postal dollar you spend Address matching De-‐dupe Remove bad addresses Innovate. Automate. Collaborate. Pre-‐sort Co-‐mail/ drop ship Intelligent mail Mail strategies Distribu9on
- 12. QUESTIONS? 5457 Twin Knolls Road, Suite 200, Columbia, MD +1.267.640.9158 Marianne.Calilhanna@Cenveo.com https://twitter.com/CenveoPublisher Cenveo Publisher Services Innovate. Automate. Collaborate.